OCI Posts KRW 30.3 Billion Operating Profit in Q3... Semiconductor Materials Growth Continues

Revenue of KRW 599.1 billion, up 12% from the previous quarter
Performance driven by semiconductor materials and Carbon Chemicals
Scaling back low-margin businesses and increasing investment in high-value-added materials

OCI continued its streak of profitability in the third quarter of this year, driven by expanded sales of semiconductor materials and stable performance in its carbon chemicals business.

OCI disclosed on Wednesday that it recorded consolidated revenue of KRW 599.1 billion and operating profit of KRW 30.3 billion in the third quarter of this year. Revenue rose 12% from the previous quarter, while operating profit declined due to the weaker exchange rate and narrower spreads for benzene, toluene and xylene (BTX), as well as toluene diisocyanate (TDI). Cumulative operating profit for the first three quarters reached its highest level for the same period since the company’s spin-off in 2023.

The Basic Chemicals division, which includes semiconductor materials, recorded revenue of KRW 212.6 billion and operating profit of KRW 9.7 billion. Although performance in basic materials declined due to lower chlor-alkali selling prices, both revenue and operating profit in the semiconductor materials business increased.

The Carbon Chemicals division posted revenue of KRW 397.3 billion and operating profit of KRW 29 billion. Higher carbon black selling prices and increased pitch sales supported its performance.

To improve profitability, OCI is scaling back low-margin businesses and restructuring its portfolio around semiconductor and high-value-added materials. It recently discontinued its loss-making TDI business and is working to increase operating rates for semiconductor-grade hydrogen peroxide, expand phosphoric acid production capacity and develop high-value-added etchants.

As a new business, OCI is entering the wafer reclaim business for semiconductor packaging. It plans to leverage the technology and customer base developed through its existing semiconductor materials business, with the goal of completing construction of a plant in 2027 and beginning commercial operations in 2028.

OCI expects growth in its materials business to continue in the fourth quarter, supported by increased demand in the semiconductor sector. However, it expects performance in the Carbon Chemicals division to decline slightly due to higher costs resulting from scheduled maintenance.

"We maintained our profitability, supported by growth in our semiconductor materials business and stable performance in our Carbon Chemicals division," said OCI Vice Chairman Kim Yushin. "We will strengthen profitability by pursuing business portfolio improvements alongside investments in future growth businesses."

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